Boston, MA 06/26/2013 (wallstreetpr) – Sprint Nextel Corporation (NYSE:S) has announced that it has obtained approval from the shareholder’s to adopt the merger agreement providing for a substantial investment in SoftBank Corp. Nearly 98 percent of the shareholder’s have voted for the merger agreement at the Special Shareholder’s Meeting held on June 25, 2013.
The CEO of Sprint, Mr. Dan Hesse has overwhelmingly said that it was a historic day for the company. He thanked the shareholder’s for their support and concluded by saying that the deal would surely enhance Sprint’s long-term value and competitive position with greater financial flexibility.
The ultimate goal of the Sprint-SoftBank transaction is still subjected to the receipt of the approval from the Federal Communications Commission (FCC). Sprint and SoftBank anticipates that the approval from the FCC will be obtained and the merger will be consummated in early July 2013.
As previously announced, the shareholder’s of Sprint will have two options and they are free to exercise any one of them. Stockholders can elect either to receive one New Sprint share for every one share held by them or can take cash of $7.65. Such exercise is subjected to the previously disclosed proration provisions in the merger agreement. The total cash consideration available to Sprint stockholders is $16.64 billion.
Spirit is basically a holding company which indirectly conducts its operations throught its subsidiaries. It operates in two segments namely Wireless and Wireline. Sprint is a communications company which offers a wide range of wireless and wireline communication product and services. Sprint has served more than 55 million customers as per the results of the first quarter ended for the year 2013 in different 50 states. Sprint was the first company to provide wireless 4G service from a national carrier in US.
The average volume of the stock traded is 62.61 Million whereas 120.11 million shares exchanged hands in its previous day’s trading session. The stock of the company closed at $6.88 recording a plunge of 0.29% for the day.
